Midas Magic seeks its investment objective of capital appreciation by focusing primarily on large companies, with a broad orientation towards conservatively priced value stocks and aggressively priced growth issues. The Fund seeks portfolio companies with global operations and superior returns on equity and assets. Top performing holdings in the Fund’s portfolio in the three months ending June 30 include JPMorgan Chase & Co. (worldwide financial services) and the “Kimball companies” – Kimball Electronics Inc. (electronic manufacturing) and Kimball International Inc. (furniture). The Fund’s holding of Coach Inc. (global luxury retailer) hampered returns as its shares sagged further on declining North American sales. The Fund’s overall portfolio, as compared with the S&P 500, has a heavy weighting towards financial services, and less to economically sensitive industries such as energy and defensive consumer products companies. The Fund recently reduced some holdings to eliminate leverage and adopt a more defensive investment posture.
Midas Fund's strategy is to seek investments in higher quality senior and intermediate producers of precious metals and other natural resources with a growth component. As the gold price fluctuated between $1,140 and $1,300 per ounce, the Fund’s portfolio benefited in the second quarter of the year from its holding of Detour Gold Corp., whose shares recovered strongly on recent optimism about its operating results. With a negative impact on the Fund’s portfolio, prices for the shares of developing platinum miner Platinum Group Metals Ltd. have fallen after the company reported project cost increases and delays to its mining plans. Using the Fund’s cash reserves, a recent addition to the portfolio are shares of a long standing company in the minerals sector, with a value-add technology and recent acquisition to provide potentially increasing revenue and cash flow.
uses a core “asset allocation” strategy to seek its investment objective to preserve and increase the purchasing power value of its shares over the long term. The Fund’s asset allocations and target percentage ranges are gold (10-30%); silver (0-20%); Swiss franc assets (10-30%); hard asset securities (15-35%); and large capitalization growth stocks (15-35%). In the recent period, the Fund has benefited moderately from its target range allocations to gold and silver, and from its use of leverage. In the three months ending June 30, the Fund’s returns were benefited when its hard asset securities investment in First Quantum Minerals Ltd. (copper mining) rose, but were hampered by a decline in the shares of Wal-Mart Stores, Inc. (global retailer) on disappointing results. Midas Perpetual Portfolio has recently reduced one holding and eliminated another to reduce leverage.